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A trip to Europe will be cheaper this summer

As the rupee has gained against the euro and other currencies, booking now will help get better packages

Priya Nair
If you are planning a trip to Europe the coming summer, it might be a good idea to book the package now. This is because the rupee has gained about six per cent against the euro since December last year.

A holiday in Canada, too, might be attractive, with the rupee gaining about six per cent against the Canadian dollar in the same period. Australia and New Zealand, against whose currencies the rupee has gained five per cent and three per cent, respectively, are good options, too.

Guldeep Singh Sahni, president of the Outbound Tour Operators Association of India, says a change in the value of a currency has an impact in the case of big budgets alone. "If someone has a budget of Rs 50,000-60,000 and is planning a trip to Southeast Asia, a change in the rupee's value might not affect her/his plans because the impact will be marginal. But if someone is planning to go to Europe next year and has a budget of about Rs 5 lakh, she/he might decide to go this year, as the rupee is stronger," he says.
 

With the rupee gaining 21 per cent against the Argentine peso, 10 per cent against the Brazilian real, 13 per cent against the Chilean peso and 43 per cent against the rouble, should you consider these destinations as well?

Neelu Singh, chief operating officer of Ezeego1.com, says the rupee's gain against some currencies is a bonus for travellers, not a decisive factor. "Also, some higher footfalls are topical in nature. For example, Brazil did really well this year, owing to the FIFA World Cup. As Australia and New Zealand will co-host the Cricket World Cup early next year, they will attract many cricket fans from India," she says.

Ezeego1.com's 'Heart of the Canadian Rockies' package starts at Rs 1,29,166 a person for nine nights/10 days on a twin-sharing basis. The package includes breakfast, hotel accommodation and sightseeing tours. A three-night/four-day Melbourne trip from Ezeego1.com is available at prices starting at Rs 95,999. This includes, return economy-class airfare with taxes, accommodation for three nights in Melbourne, sightseeing tours, dinners and airport transfers. For Rs 1,45,799, you could get a seven-night/eight-day trip to Melbourne, Cairns and Sydney, including return economy-class airfare, breakfasts and day tours. Prices of Ezeego1.com's 12-night/13-day trips to New Zealand begin at Rs 2,25,548.

Amod Thatte, head (product and innovation-tour operating), Kuoni India, says, "Of these countries, our highest traffic is to Canada, primarily during April-September. So, if the rupee gets stronger against the Canadian dollar, it will have a positive impact on the tourist numbers to that country. From an Indian perspective, other destinations are also emerging."

Karen Anand, head (relationships), Cox and Kings, however, says Indian tourists might not be in a hurry to travel to many countries yet. "Travelling to Argentina and Brazil could cost as much as a trip to the US - about Rs 1 lakh. Another reason is other destinations are third-world countries and typically, Indians aren't keen on culture. They prefer to go shopping and visit theme parks, which the US offers," he says.

In case the rupee depreciates, one could choose short-haul destinations or opt for shorter holidays. "When the currency is stable, travellers tend to book additional tours or activities (sightseeing or adventure sports) from India. But when the currency fluctuates, they buy only the basic tour package and book additional tours when they reach the destination," says Sahni.

To benefit from a stable currency, tour operators offer additional activities. Thatte of Kuoni says, "For European destinations, we have been able to launch packages at price points similar to the ones last year, but with greater and attractive inclusions. Consistent airfares have proven favourable. For the US, we have managed to position our holiday propositions at the same level as last year."

Ezeego1.com's 'Focus on Scandinavia' package starts at Rs 1,71,727 and includes meals, hotel accommodation and sightseeing tours. With the rupee gaining about five per cent against the Danish krone, 18 per cent against the Norwegian krone and 13 per cent against the Swedish krona, such a package could be attractive.

"There has been a marginal increase of about 10 per cent in overall prices, compared to last year. While comparing prices, the only differentiating factor will be a slight rise in airfares," says Singh of Ezeego1.com.

Within Asia, Exeego1.com offers a four-night/five-day package for Bangkok and Pattaya, starting at Rs 6,955 a person, which includes breakfast, accommodation, sightseeing and transfers. A 'Family Fun in Malaysia and Singapore' package for six nights/seven days starts at Rs 36,162. But with the rupee's gain against these currencies being somewhat muted, travel to these countries might not be significantly attractive. The rupee has gained 3.5 per cent against the Malaysian ringgit and 0.3 per cent against the Singapore dollar. Against the Thai baht, it has depreciated two per cent.

Cox & Kings offers a trip to South Africa for Rs 1.45 lakh a person (on a twin-sharing basis) for 11 days/10 nights. The package includes airfare, visa, accommodation, meals and insurance. This, too, might be worth considering, as the rupee has gained about seven per cent against the South African rand.

For trips abroad, it is best to plan in advance and have a buffer of about Rs 10,000 in your budget. This will address contingencies such as currency fluctuation, an increase in visa charges or airlines increasing fuel surcharge.

While travelling abroad, prepaid travel cards should be considered, as these lock the conversion rate before one travels. These cards are available in multiple currencies and one can refill these if required. You could also carry travellers cheques denominated in the currency of the country concerned, as this does away with the hassle of conversion and can be used akin to cash.

While calculating the money one needs for trips abroad, expenses such as those on sightseeing, local travel, food, shopping, etc, should also be taken into account.

"It is advisable to carry the local currency, especially as most currencies are available in India…In fact, many shops or malls might accept only local currencies. People prefer to carry dollars because it is easier to convert while travelling abroad. But you end up paying conversion charges twice," says Sahni.

Leisure travellers can carry up to $10,000 in a financial year, while those travelling for business can carry up to $25,000. "A card-to-cash ratio of 75:25 is advised because cards are accepted at all VISA outlets, including automated teller machines and over-the-counter purchases. Before you leave, it is important to check the charges applicable on your card. Also, remember cross-currency conversion vary across countries. Carry some local currency to pay for essentials such as food & drink, tips and taxis," says Singh.

IF YOUR FLIGHT IS CANCELLED THIS WINTER...
If your flight is cancelled, as in the case of SpiceJet recently, you are entitled to a refund from the airline. The money is refunded to your credit card or bank account within four-to-five working days. When SpiceJet flights were cancelled, for customers who booked through a particular travel website, the airline gave the option of instant refund in the form of e-cash. These were credits which could only be redeemed against tickets bought in future. SpiceJet had also issued cheques in case of customers who had purchased tickets from airport counters.

According to Directorate General of Civil Aviation regulations, in case of cancellation, the airline is supposed to accommodate you on another flight or another airline. If not, the airline should refund the ticket. The airline should also provide meals and accommodation to passengers waiting for alternate flights.

However, passengers will not be entitled to compensation if they don't accept alternative travel arrangements offered by the airline or when the cancellation occurs owing to extraordinary circumstances beyond the airline's control. These include a natural disaster, civil war, political instability, security risks, riot, government regulation or order affecting the aircraft, strikes and labour disputes causing cessation, meteorological conditions, cancellations and delays clearly attributable to Air Traffic Control, slowdown or interruption of work or any other causes that are beyond the control of airlines but which affect their ability to operate flights on schedule.

Jay Bhatia, co-chairman (airline council) at Travel Agents Association of India, says international airlines usually make the effort to accommodate passengers on alternative airlines, since they often have connecting flights to catch. But most low-cost airlines operate on a point-to-point basis and might find it difficult to accommodate passengers on other airlines.

While booking your air tickets, one must always check the cancellations rules, which is printed on the ticket. If it is a refundable ticket, then you will get the money after deducting the cancellation fee. This can be Rs 1,500-3,000 (domestic), depending on the airline. It can also vary for offline and online tickets. But if it is a non-refundable ticket, or a special-fare ticket, then you will not get any money back in case of cancellation.

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First Published: Dec 22 2014 | 12:20 AM IST

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